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Week 4 - Problem 2
Company ABC's earnings and dividends will grow at 0.5% monthly during the next five years.
Its growth will stop after year 5. In year 6 and afterward, it will pay out all earnings as dividends.
Assume next year's EPS is $10 and the dividend is $5 and the market capitalization rate is 9 %.
What is ABC's stock price?© BrainMass Inc. brainmass.com June 3, 2020, 6:26 pm ad1c9bdddf
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